Tuesday, June 21, 2005

Tuesday Watch

Late-Night Headlines
Bloomberg:
- The euro may weaken for a second day in Asia on speculation the European Central Bank will reduce interest rates from a six-decade low.
- SpiceJet Ltd., the newest of a half dozen low-fare carriers that started flying in India, said it plans to double the purchase of Boeing's aircraft to meet greater-than-expected travel demand.
- CNOOC Ltd., China's largest offshore oil and gas producer, may bid about $20 billion in cash for Unocal Corp., the eighth-biggest US oil company, trumping an offer from Chevron.
- Crude oil is falling from a record in NY on speculation OPEC will raise its output quota for a sixth time in a year to bolster global stockpiles and stem price gains.

Wall Street Journal:
- Qingdao Haier Ltd, a Chinese appliance maker, and private equity companies Blackstone Group and Bain Capital are preparing a $16/share bid for Maytag.
- European manufacturers continue to be hurt by the strength of the euro, despite the currency's 9.2% drop against the dollar since the middle of March.

La Tribune:
- French Finance Minister Thierry Breton may today cut his forecast for domestic growth in 2005 to between 1.5% and 2%, from a previous range of 2% to 2.5%.

China Daily:
- China may impose controls on investments in the production of some petrochemical products to prevent oversupply in the domestic market.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on GE, BHI, SII, SLB, RIG and DO.
- Reiterated Underperform on VTS.

Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated +.02%.
NASDAQ 100 indicated unch.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
CMC/1.25
JBL/.33
LEN/1.28

Upcoming Splits
None of note

Economic Releases
None of note

BOTTOM LINE: Asian indices are mostly lower on declines in consumer shares in the region. I expect US equities to open modestly higher on lower energy prices. The Portfolio is 75% net long heading into the day.

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